GOVERNMENT POLICY ON RAILWAYS

Press, Volume LXXXVIII, Issue 26870, 24 October 1952, Page 8

GOVERNMENT POLICY ON RAILWAYS

Decisions On Report Of Royal Commission MINISTER GIVES DETAILS TO PARLIAMENT (New Zealand Press Association) WELLINGTON, October 23. The Government’s decisions on the recommendations of the Royal Commission on Railways were outlined by the Minister of Railways (Mr W. S. Goosman) when he moved the second reading of the Government Railways Amendment Bill in the House of Representatives this evening. Mr Goosman set out nine recommendations as having been approved by the Government. Decision on seven had been deferred for further consultation, he said, and two had been rejected.

The bill Mr Goosman was discussing provides for the setting up of a commission of management for the railways. It could, he said, be regarded as a milestone. A great improvement in the management of the railways could result from it, the Minister said.

The Opposition protested against the late introduction of a bill of such importance, but did not seriously oppose its provisions, and the measure was passed.

Mr Goosman said that among the matters on which the Government had made policy decisions were the following:— (1) The setting up of the New Zealand Railways Commission. (2) The commission would be directed to see that the railways met operating charges and made a reasonable contribution to interest charges. Freights and fares would be fixed in accordance with this prin-

ciple. (3) A well-paid, well-qualified, and efficient staff was a primary objective. Under this was the provision of amenities and safe conditions of working. Increased provision of housing for shift workers and others required for special jobs or localities had already been decided. (4) The following principles would be followed in considering the closing of branch lines: —The Government would make the decision. Each case would be considered on its merits. No line would be closed without the provision of reasonable and adequate alternative services. Such alternative services would be provided by private contract Wnere this could be arranged. (5) The Government had already decided to proceed with the electrification of the Auckland-Frankton line and the Auckland suburban and underground railway. (6) Fast rail-cars would be introduced to supplement express passenger train services and to replace slower passenger trains where justified. (7) The curtailment of refreshment room facilities had already been carried out in some cases, as recommended by the Royal Commission. (8) It was not intended to expand road freight services. (9) A fully staffed costing section would be set up. Further Consideration The Minister said the Government would give further consideration to the following matters in consultation with the Railways Commission:— (1) The advisability of rearranging the capital structure of the railways. (2) The co-ordination of the existing railway road services with services conducted by private operators. (3) The future of the Hutt Valley road services. The commission would be asked to take out a fresh costing of the capital assets used and the running expenses of the Hutt Valley services, and when this was done would consult with the Government on the future management of these services. (4) The future expansion or modification of railway refreshment services. (5) The commission would be asked to consider the future management of railway ports. The objective would be to discontinue operating ports, and the commission would be asked to consult with the harbour boards concerned and then recommend to the Government. (6) The establishment of a suitable public relations department. (7) The adequate staffing and the increased efficiency of the railway workshops. Rejected Proposals Mr Goosman said the Government had rejected the following recommendations of the Royal Commision:— (1) That tlje Railways Department be the issuing authority for all temporary licences. (2) The setting up at this stage of a transport co-ordination board. The Government felt that the new railways management • commission should be given time to consolidate its position before further consideration was given to this matter.

Mr Goosihan said that the past policy of manager control had been unfair both to the manager and to the staff. In 22 years there had been seven managers. The railways was New Zealand’s biggest business, and it was not possible for one man to have a full grasp of it.

In his opinion the management should not be centralised in Wellington,. but members of the commission should be in a position to go right throughout the country and meet the staff. Of the three members to be appointed from the department he hoped one would live at Auckland, one at Wellington, and the third in the South Island. They could come together regularly and thrash out their problems. Mr Goosman said he hoped that one of the two outside part-time appointments would be held by a representative of the farming industry and the other by a representative of the commercial community. The Minister said it was important that the type of person chosen to hold appointment should be able to restore the confidence of the railwaymen and the people in the railways. The staff today felt that there was something “not quite right” with the railways. Railwaymen had a pride in the service. and would like to feel that it could be improved. “I know they have had more kicks than kisses,” he said. He added that they had been judged by the small mistakes, which could not be helped in such an enormous business. It had become a habit of the people to be critical of the railways.

Term of Appointment The Royal Commission had recommended a seven-year term for members of the commission, but it was felt that a three-year term would be better, said the Minister. After the first three-year period the terms of members should not expire at the same time, he said. This would lead to a greater continuity of management. Mr Goosman said it would be good to pick out young men by their ability for the positions. “It would be a good thing to infuse some youth into management,” he said. It would be fatal to impose a board of management made up of men outside the industry on the railways, said the Minister. This commission was made up with a majority of railway men.

Mr M. Moohan (Opposition, Petone) asked whether it was intended to obtain the three departmental representatives from the clerical section. Mr Goosman said he was not able to say. Selection was a big job,

carrying a tremendous responsibility. No decision had yet been made. Mr Goosman outlined the main objective as the provision of an efficient and economical passenger and goods service for the people. He said that the success of the railways service would always depend to a great extent on the quality and toodwill of its staff in every field. “Every effort therefore must be made to preserve and promote harmony, enthusiasm, and pride of occupation through good employer-employee relations, the provision of adequate amenities, just terms of employment, and rewards for service, and, especially, incentives to greater efficiency and service to the community.” The Minister said that equipment must be maintained at a high and modern standard of safety and efficiency. Control of Policy He said that the Government would retain the control of railway policy and capital development. It would delegate to the commission the responsibility for the management and administration of the railways hitherto exercised by the Minister and the General Manager. The commission, he said, would give effect to < the decisions of the Government, and it would be required to investigate and recommend to the Government the steps which should be taken to implement the policy laid down and to report progress from time to time. . The Leader of the Opposition (Mr Nash) said that although the Minister had laid the blame for past difficulties in the fact that managers were appointed for three years, the members of the commission were to be appointed for a similar term. Mr Nash said that although the Minister had said that the members would travel widely, one was to live at Auckland, another at Wellington, and a third in the South Island. There were going to be district directors, he said. What did it matter where they lived if they were to travel? he asked. Referring to the outside appointments, Mr Nash said that the competence of the individual should be the major concern in selecting him, not the fact that he represented the farming or commercial fraternity. Mr Nash said that the only way the Minister could get results was by the adoption of some system of coordinating the four forms of transport, but even more important was the fact that the Minister had to find a way to get the railwaymen to work freely and in the interests of the service. That was not in any way a criticism of those who worked in the service; they had to get better pay, conditions, and amenities. Co-ordination in the long run, even with the best efficiency possible, would not work out unless there was a satisfied and co-operative staff, feeling that they were part of the service. Mr Nash said.

Staggering of Appointments The Minister of Labour (Mr W. Sullivan) said it was quite true that the appointment of members to the commission was for three years, but appointments could be staggered, and that would ensure continuity of policy and practice. He agreed that the success of the commission system depended on the men appointed to it. The Minister of Railways had made a candid admission that the position of the railways could not be worse, Mr Sullivan said. He (Mr Sullivan) considered that the first thing the commission should do was to check on the capital works programme, and then carry out a full and complete survey of the serious staffing position. Housing was one of the things which would bring new and more staff to the railways, and the Minister of Railways should be praised for his programme to build 300 houses<a year for eight years for railwaymen. Mr Sullivan said.

The commission should investigate the electrification of the railways, said Mr Sullivan. Most members would agree, that suburban lines should be electrified before the main lines, which could be electrified as and when funds and materials were available. Mr Sullivan said that another survey should bp made of freights and fares, and motor competition with the railways should be investigated. Mr Nash: that would interfere with private enterprise. Mr Sullivan: Private enterprise was washed out by the previous Government. which took over the services and allowed them to run parallel with the railway lines. An important problem for the commission was the handling of goods at railway ports. Mr Sullivan said. It should not be the function of the railways to take charge and care of and to deliver goods arriving at those ports. The commission should also investigate the position of branch lines. Mr Sullivan said there had been confusion over the type of fuel to be used on the railways. Locomotives had been converted to fuel oilburners, and were now being converted back to coalburners. He felt that the railways should use all the resources within the country. “I have felt all along that the task of managing the railways is too big for any one man,” said Mr Sullivan. He believed that the commission form of control, if the right men were selected, and if the control was spread over New Zealand, would achieve results. The system was well worth a trial.

Mr Goosman’s Reply Mr Goosman. replying to the debate, said he was disappointed that the Leader of the Opposition would not see that a staggering of the terms after the initial appointments were made to the commission would result in a continuity of policy. He said he believed that long-distance traffic was legitimate traffic for the railways to handle. “I have no idea who the members of the commission are to be.” said Mr Goosman. He had discussed the matter with one man, but no one in the Railways Department had been approached. He would do nothing about appointments until the bill had been passed. Mr Goosman said he hoped the commission system of control would help the railwavs to regain a satisfactory position. He firmly believed that that system would be better than the present system of management.